NEW: FOMC: Interest-rate hike not likely on table for June meeting

April 29, 2015
WASHINGTON (4/29/15, UPDATED 2:27 p.m. ET)--With inflation still lagging and lingering effects of a harsh winter still dragging on the economy, the Federal Open Market Committee (FOMC) gave no signal today that it would hike interest rates during its June meeting.

In the FOMC's policy statement, released at the conclusion of its two-day policy-setting meeting, the Fed said that until it sees "further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term," it will have to hold interest rates at their near-zero levels.

Many analysts believe that the decision on when to raise rates is now a choice between the fall and the end of the year.

"Based on the economic data released today, it is highly unlikely that the Federal Reserve will make a signal to raise rates in the next FOMC meeting," said Perc Pineda, CUNA senior economist. "Nevertheless, near-zero interest rates will not be around indefinitely."

In the statement, the Fed noted that the pace of job growth has moderated, growth in household spending has slowed, business fixed investment has softened and the housing recovery has remained slow.

On the flip side, household real income rose strongly and consumer sentiment remains high.

The FOMC's next meeting is scheduled for June 16-17.